The Government adds more subjects that are eligible for corporate income tax incentives

LEGAL UPDATES

The Government adds more subjects that are eligible for corporate income tax incentives

1. The Government adds more subjects eligible for corporate income tax incentives 

On June 4th, 2021, the Government issued Decree 57/2021/ND-CP supplementing point g, Clause 2, Article 20 of Decree 218/2013/ND-CP on corporate income tax (CIT) incentives for project to produce supporting industry products. 

Accordingly, Decree 57/2021/ND-CP adds entities that are eligible for CIT incentives when meeting the following conditions: 

  • Having an investment project manufacturing products on the list of supporting industry products prioritized for development, implemented before January 1st, 2015; 
  • Satisfying the conditions of the project to produce supporting industry products according to the Law amending tax laws 2014; 
  • Being granted a certificate of incentives for manufacturing supporting industry products by a competent authority.

The Decree 57/2021/ND-CP takes effect from June 4th, 2021. 

2. The Government promulgates Decree 58/2021/ND-CP regulating the provision of credit information services 

On June 10th, 2021, the Government issued Decree 58/2021/ND-CP regulating the provision of credit information services, which clearly explains the concept of credit information and types of credit information which is allowed to be collected.

The Decree stipulates:

  • Credit information is data, figures, and relevant data of borrowers at participating institutions of credit information companies;
  • Identification information is information identifying borrowers in accordance with the Government’s regulations on keeping secret and providing customer information of credit institutions, foreign bank branches;
  • Negative information about borrowers is credit information about bad debts, breach of payment obligations, violations of law, lawsuits, prosecutions and other adverse information affecting the evaluation results. debit customers.

According to Clause 2, Article 18 of the Decree, credit information which is allowed to be collected includes:

  • Identification information of borrowers and related persons of borrowers in accordance with current law;
  • Information about credit history, lease of property, purchase of deferred payment, installment payment, pawn;
  • Information about debt repayment history, amount due or undue, due date, credit limit, debt group, debt sale, off-balance sheet commitments and results of rating debit customers;
  • Information on the guarantee of the borrower’s debt repayment obligations;
  • Other relevant information which is guaranteed not to violate the borrower’s legal rights, excluding information about the borrower on the list of state secrets.

The Decree 58/2021/ND-CP takes effect from May 15th, 2021 and replaces the Decree 10/2010/ND-CP and Decree 57/2016/ND-CP.

Download Legal Updates as a PDF here.